4castplus Change Management
Change management plays a critical and central role in project cost controls. Changes are a known performance risk area; so the management, reporting and communication of changes are all critically important. Not only for project controls, but also to minimize the paralyzing – and demoralizing – effects changes and deviations can have on projects.
4castplus Change Management plays a vital role in controlling project risks & cost overruns. 4castplus change orders have deep connections to all other cost management disciplines within the system, so robust change reporting is available everywhere. Reporting that includes, and isolates, the resources and costs that have derived from change orders. In areas like: procurement, tracking, client billing, budgets, etc. – detail reporting underscores the split between the baseline and the many change orders that occur on a project. 4castplus change management has easy and clean workflows that guide the user through the change management processes. Processes that include approvals, team collaboration and audit trails.
Manage Proposed, Approved or Rejected Change Orders
Create proposed change notices and circulate to project team stakeholders, customer and subcontractors for collaboration and approval. Report on proposed change orders and the effect they’ll have on budget and schedule. Control the approval status of change orders as they move from Proposed to Submitted for Approval, Approved and Rejected.
Change orders in 4castplus blend seamlessly with the rest of the system, but underneath the covers, they are treated like their own sub-project with a unique budget, resources, schedule, etc. This enables 4castplus to present aggregated project-level reporting on Baseline, Current and Pending budget details; while at the same time, enable drill-down reporting to one or more change orders and their status & progress.
Track the Reasons, Source, Funding and other Details for Project Changes
4castplus enables you to track a variety of metrics such as Source, Reason, Vendor, RFI, Funding Source, and more. Create customized change Reasons that are unique to your business. Trend this information over time and uncover key performance indicators about your vendors, customers, project managers, etc.
You can even upload and attach an unlimited number of documents to a change order. In the screenshot to the right, you’ll notice a drag & drop document area.
Integrated Estimating With the Change Order
You can build your estimate and budget directly as part of the change order. Specify any WBS cost area and workpackage as the items to include in the change estimate. The budget created will be linked directly to that change order for visibility in tracking and reporting.
Create Change Orders, Budget Transfers and Change Forecasts
4castplus allows you to create three types of change events:
- Change Order – primarily used for Scope Changes
- Budget Transfer – used to move funds and quantities between project cost areas in an audited way that is subject to approval
- Change Forecast – used to forecast by quantity or lump sum amounts to indicate trends
For more on the differences in these change events, please read this article: What’s the Difference Between a Change Order, Budget Transfer and Change Forecast?
Numerous Reports Showing Baseline vs. Control Budgets
There are many built-in reports that show the project’s baseline budget compared with the control budget of approved & pending change orders, budget transfers and forecasts. You can also create your own ad-hoc reports using the 4castplus custom report builder.
Detailed Tracking of Change Order Progress
The 4castplus tracking system enables users isolate labor, equipment and materials tracking to the exact change order. This enables project managers to know, for example, exactly how many hours have been consumed on a Change Order and how many are remaining. There is additional capability for managers to override the placement of labor hours and move them onto the correct change order and cost code if originally entered incorrectly. Read more on change order detail tracking.
Built-in Approval Process
Utilize the change order approval system in 4castplus to ensure transparency and accountability with vendors and/or customers.
Users can build multi-level approval workflows for change orders using the built-in workflow management system. You can set Delegation of Authority rules for approval thresholds. You can also route approvals to people outside the organization through the approval portal.
4castplus has integrated contingency management to enable project managers and cost engineers to make explicit contingency drawdowns by specifying “Contingency” as the funding source for a Change Order.